Retention and Loyalty

Customers are attracted to your purpose. Research shows that true brand loyalty comes from an emotional attachment, often born from the resonance they feel toward a brand's choices. On average, companies lose 13% of customers every 5 years [1]. In a market as competitive as coffee shops, it is essential to make choices that can grow your customer base. This is particularly key in growth segments which are forecast to increase sales in the future. Plant milk is a great example of this; we have already shown the rate at which consumers are turning toward it. By ending plant milk charges, you can capitalise on a large volume of consumers who are actively looking to support brands who understand this need.

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Financial Performance

Removing charges need not result in lost profit. Combining the rapid uptake of plant milk with a majority of coffee shops still charging, it is a fair assumption that sales of plant milk will increase if you are an early adopter of ending charges. Below is a simple example we've put together to demonstrate the potential earnings after 1 year of removing charges.

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Using a base of 100 sales per month and assuming just 4% higher sales of dairy-free vs. dairy after charges are removed, profitability is matched after 4 months and ultimately returns 14% higher year-end profitability than if charges were maintained.

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We know each business is different but believe strongly that ending charges will mean more loyal customers and higher profit over time.